Fintech firm poised for growth after $50 million capital infusion

As investments, Friedman asserted, second homes beat the stock market: “A homeowner’s best investment is the home they live in – far better than the returns we’ve seen from the stock market in 2022, and a great hedge against record-high inflation,” he said. “With the support of Saluda Grade, Knox can now help even more homeowners who are moving hold on to their best investment. Our loan products will give people the easiest way to remove short-term cash constraints that can come with buying a new home while keeping the old one as an investment property.”

Knox plans to use the $50 million windfall to expand its lending business into Georgia, Friedman said, as well as to offer a number of additional loan products for those putting their homes on the Knox platform. The company’s loan products include KEAP loans, HELOCs, new purchase loans, mortgage refinances and cashout refinancings, he added.

In a prepared statement, founder and CEO of Saluda Grade Ryan Craft explained why Knox was selected to receive the capital: “Since launching in 2019, Knox Financial has demonstrated to homeowners across the US that they can build better financial futures for themselves and their families by holding on to their former homes as rentals,” he said. “The company is well-positioned to fundamentally change how homeowners think about buying and selling properties, and we look forward to seeing them grow significantly in the coming years.”

Some of that growth has already occurred, and the firm is scaling its business at a time of rapid expansion. Over the last year, Knox has reached into new markets across the US, doubled its staff and added more than 1,000 clients, according to company literature.